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Criteria for Identifying Strategic Industry Clusters for Workforce Development

Strategic clusters for workforce development shall be identified by creating an index of the 12 variables provided in Sommers et al (2008) plus output per employee and weighting three workforce variables to count twice, as shown below.


Cluster Analysis Variables

Workforce Index

Location Quotient

Count once

Employment

Count twice

Output

Count once

Earnings/ Worker

Count once

Percent of Occupations in Middle Wage Range

Count twice

Percent of Occupations in High Wage Range

Count twice

Change in Establishments 2001-07

Count once

Change in  Employment 2001-07

Count once

Change in  Wages 2001-07

Count once

Projected Empoyment. Increase 2006-16

Count once

R & D Occupations as a Percent of Total Empl.

Count once

Exports as a Percent of Output

Count once

Output/Employment

Count once

Rationale
Of all the characteristics examined in the cluster study, employment and the percent of middle- and high-wage occupations (jobs) are the variables that offer the most direct indicators of a cluster’s potential to offer good and plentiful employment opportunities to the state’s workforce.

Sommers et al, Industry Cluster Analysis for Washington State Workforce Development Areas, November 2008. http://www.wtb.wa.gov/ClusterAnalysis.asp

 

 

 

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